EA is cutting around 670 jobs and has cancelled a new Star Wars game that was being developed by Respawn Entertainment.
CEO Andrew Wilson told staff this week that the publisher was laying off around 5% of its workforce and "moving away from development of future licensed IP that we do not believe will be successful in our changing industry".
In a post on EA's official website, President of EA Entertainment and Technology Laura Miele confirmed that development on Respawn's rumoured Star Wars first-person shooter had been halted.
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"It's always hard to walk away from a project, and this decision is not a reflection of the team's talent, tenacity, or passion they have for the game," she added.
"Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus."
IGN reports that EA is set to focus on its existing franchises, including EA Sports, The Sims, and Star Wars: Jedi. Development on the Black Panther and Iron Man games is continuing at EA, while the next Mass Effect game is at the pre-production stage.
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The wave of layoffs at EA comes nearly one year after the company cut an estimated 775 jobs last March.
On Tuesday, PlayStation announced plans to lay off 900 of its staff, including the closure of its London Studio.
The Quarry's Supermassive Games and Life Is Strange: True Colors' Deck Nine have also confirmed layoffs this week, while Mutazione developer Die Gute Fabrik has halted production after struggling to secure funding for its next game.
These job losses are the latest in an extremely difficult year for the gaming industry, with the estimated total number of layoffs for 2024 now at around 8,000.
